3. 3
SN Panigrahi is a Versatile Practitioner, Strategist, Energetic Coach, Learning Enabler.
He is an International-Corporate Trainer, Mentor & Author – PMP Trainer
He has diverse experience and expertise in Project Management, Contract
Management, Supply Chain Management, Procurement, Strategic
Sourcing, Global Sourcing, Logistics, Exports & Imports, Indirect Taxes –
GST etc.
He had done more than 150 Workshops Globally on above
Published more than 500 Articles; More than 90 YouTube
Presentations & More than 90 SlideShares
He is an Engineer + MBA +PGD ISO 9000 / TQM with around 29 Yrs of
Experience
He is a certified PMP® from PMI (USA) and become PMI India
Champion
Also a Certified Lean Six Sigma Black Belt from Exemplar Global
Trained in COD for 31/2 Yrs. on Strategy & Leadership
GST Certified – MSME – Tech. Dev. Centre (Govt of India)
ZED Consultant – Certified by QCI – MSME (Govt of India)
Member Board of Studies, IIMM
Co-Chairman, Indirect Tax Committee, FTAPCCI
Empanelled Faculty in NI MSME
He has shared his domain expertise in various forums as a speaker & presented a number of papers in various national and
international public forums and received a number of awards for his writings and contribution to business thoughts.
SN Panigrahi
9652571117
snpanigrahi1963@gmail.com
Hyderabad
5. 5
Understanding Project Management
➢ ● What is a project?
➢ ● Project management life cycle
➢ ● Role of a project manager
Initiation
❖ ● Determining scope
❖ ● Identifying skills & team required
❖ ● Identifying Risks
Planning
➢ ● Creating work breakdown structure
➢ ● Sequence of activities
➢ ● Creating schedule
➢ ● Cost estimation
➢ ● Analyzing Risks
➢ ● Design a communication plan
➢ ● Plan change control
Managing - Execution
❖ Direct and Manage Project Work
❖ Manage Project Knowledge
❖ Manage Quality
❖ Acquire Resources
❖ Develop Team
❖ Manage Team
❖ Manage Communications
❖ Implement Risk Responses
❖ Conduct Procurements
❖ Manage Stakeholder Engagement
Monitoring And Controlling Process Group
➢ Monitor and Control Project Work
➢ Perform Integrated Change Control
➢ Validate Scope
➢ Control Scope, Schedule, Cost, Quality,
Resources, Communication, Risk, Procurement,
& Stakeholders Engagement
Closing the Project / Phase
➢ ● Closing the project
➢ ● Creating the Final report
6. 6
Which of these are Projects?
5. Package Implementation
ready-made apartments with
limited customization.
2. Maintenance
like repairing an
existing building
1. Development
like building a house
as per need of the
customer
4. Conversion
like changing an
existing feature
e.g. moving to
tiled flooring
3. Enhancement
like extension of an
existing building
8. 8
Project is a temporary endeavor to achieve defined objectives by creating a unique product,
service, result or outcome with a definite start and end date.
It is - Performed by people - Constrained by limited resources - Planned, executed and controlled
What is Project PMBOK 6th Edition
Project
Features
Temporary
Endeavour
Unique
Product,
Service, Result
or Outcome
Achieve
Defined
Objectives
As per PMBOK 6th Edition
Temporary doesn’t mean shorter duration of the project it refers
to the project’s engagement having a definite beginning and end
The duration of a project is finite - Limited Time Frame - a Definite
Start and End Date
Projects are undertaken to Fulfill Objectives by producing
deliverables
Projects Drive Positive Change
Projects Enable Business Value Creation
Projects involve doing something that has not been done before
in the same environment – Outcome May be Tangible or
Intangible – Not Repetitive
The project may require some innovation to be completed.
9. 9
What is Project PMBOK 6th Edition
Examples of Project :
• Developing a new Pharmaceutical Compound for COVID - 19,
• Constructing a building or facility or industrial plant or infrastructure
• Developing a new product or service
• Business Takeovers & Acquisitions
• Effecting a change in structure, staffing or style of an organization
• Designing a New Transportation Vehicle
• Developing or Acquiring a New or Modified Information System
• Creating a new piece of software or Upgrade of software
• Designing a new network infrastructure or Installing new workstations
• Implementing a new business procedure or process
• Organizing a Conference; Birth Day Party; Marriage celebration; Holiday Trip
• Organizing a workshop for imparting knowledge.
10. 1. All of the following are characteristics of a project EXCEPT:
A. It is temporary.
B. It has a definite beginning and end.
C. It has interrelated activities.
D. It repeats itself every month.
Ans : D - Refer PMBOK Page 5, Sec 1.2.1 Projects
Chapter 1: Introduction
5
11. 11
Time, Cost, Quality, Resource & Risk Constraints
Involve an Element of Risk
Approved Budget
Performs Definable Tasks (Scope)
Projects Enable Business Value Creation
Projects Drive Change - Achieve Beneficial Change
Progressive Elaboration
Initially Plans are made on Broad basis, and Details are done
as the project progressing
Don’t confuse it with changes. In progressive elaboration, there is no
change in requirement, its only requirement detailing.
Unique Outcome
Unique Product or Service or Result or Outcome New & Different from the Previous
Temporary Endeavour
Time Scale : Clearly Specified Start & End Times Not an On-Going Effort & Not Repetitive in Nature
12. 12
Factors that Lead to
the Creation of a
Project
• New Technology
• Competitive forces
• Material issues
• Market demand
• Economic changes
• Customer request
• Stakeholder demands
• Legal requirements
• Business process improvement
• Strategic opportunity or business
need
• Social need
• Environmental consideration
13. 13
Project
Characteristics
❖ Has a Lifecycle (phases)
❖ Approved Budget
❖ Performs Definable Tasks (Scope)
❖ Scope, Time, Cost, Quality, Resource & Risk Constraints
❖ Specific Objectives - Deliverables - Defined End Result
❖ Has a Defined Timescale (specific start and end date)
❖ Unique Set of Activities (do not involve repetitive processes)
❖ Involve an Element of Risk
❖ Achieve Beneficial Change
14. 14
Project Operation
Nature Temporary On-Going & Continuous
Purpose Introduce Positive
Change
Sustain Business
To keep the Organization Functioning
Output Unique Repetitive
Management Project Management Process Management
•At the completion of a project, the end product (or result) may get turned over to the organization‟s
operational areas for ongoing care and maintenance.
• At each closeout phase – ‘Phase gate’
• When developing a new product, upgrading a product, or
expanding outputs
• Improvement of operations or the product development
process
• Until the closure of the operations at the end of the
product life
Project and
operations:
intersect at various
points during a
product’s life cycle
15. 15
Question
Helena is tasked with the responsibility to manage the process of producing cars. She has
to overlook the availability of raw materials, manufactured components and labour. Also
she has to ensure the cars produced meet the quality standards specified by the company.
What is Helena working on?
1. Project
2. Operation
3. Program Management
4. Profolio
Ans : 2 Operation
16. 16
That project managers will be updating orders daily, resolve issues and ensure that the
customer formally accepts the product within 30 days of completion. The project manager
will not perform planning or provide documentation other than daily status.
How would you define this situation?
A.Because each individual order is a “temporary endeavor,” each order is a project
B.This is program management since there are multiple projects
involved
C.This is a recurring process
D.Order incurring revenue over $100,000 would be considered project and would
involve project management
Answer is C
Explanation: Because orders are numerous and of short duration and
about resolving issues, these are recurring processes, not a project. The
project manager is not doing planning or other project management
activities, part of operations.
Question
17. 17
Fundamental project management knowledge and skills are required to successfully manage all types
of projects. The practical application of standard project management methodology will enhance the
Success of the Project. There are Several Professional Bodies in the Field of Project Management and
Prominent among them are :
Professional
Bodies
PMI
PMP
Office of
Government
Commerce (OGC)
PRINCE2
Association for
Project
Management(APM)
International
Project
Management
Association (IPMA)
18. 18
PMBOK
1st Edition
1996
PMBOK
2nd Edition
2000
PMBOK
3rd Edition
2004
PMBOK
4th Edition
2008
PMBOK
5th Edition
20013
PMBOK
6th Edition
2017
In 1983, PMI published a whitepaper with an aim to identify and collate generally accepted project
management practices. This was then made as a standard. PMI studied thousands of projects across various
geographies to figure out what works and what does not, and put together these standards and practices.
A Guide to the Project Management Body of Knowledge, or in short ‘PMBOK’ is the project management
standard for the PMP and CAPM exams, brought out by PMI, the Project Management Institute.
PMBOK contains Standards, Terminologies, Practices And Guidelines, Methods, Processes and Best
Practices to manage a project, practically in any domain or industry. It describes project management life
cycle and related processes.
There may be other industry-specific project management practices prevalent
in any industry and PMBOK prescribes common project management
standards.
PMBOK® Guide –
Sixth Edition
The 6th Edition was
released on September
22nd, 2017
19. 19
Project is a Group of Inter-related Activities having Constraints.
The three most significant project constraints -- schedule, cost and scope -- are sometimes known as the triple constraint or the
project management triangle. Additionally Three more Constraints are Added : Quality, Risk & Resources.
If any one of these factors changes,
then at least one of the other factors
also will change.
Competing Project Constraints
20. 20
As per PMBOK 6th Edition
Project Management is the Application of
Knowledge, Skills, Tools and Techniques to meet
the Project Requirements*
Project Management is the Planning, Organizing,
Monitoring and Controlling of all aspects of a project
in a continuous process to achieve its objectives, both
internal and external
Accomplished through appropriate application and
integration of project management processes identified
for the project
*Project requirements are stakeholders need and
expectations from the project
Set of Skills
Application
of Tools &
Techniques
A Series of
Processes
21. Portfolio
Related
Or
un-related
Projects, Programs,
Sub-portfolios, and
Operations
Program Only
Related
Projects
Project Only
Related
Activities
Corporate Top Level Strategies
Decision Making,
Prioritization, Review,
Realignment, and
Reprioritization of a firm’s
projects.
Focuses on interdependencies
between projects to determine
optimal approach for managing
them - Managing groups of
projects in a coordinated way
Focus on to achieve the project
objectives : Project Completion
as Scope within Budget &
Timelines
22. 22
Operation &
Maintenance
Example of a Project – Construction of a Residential building
Example of a Program – Construction of a housing complex with several buildings
Example of a Portfolio – All the Residential & Commercial Projects of the Company &
also its Maintenance
23. • The term Organizational Project Management (OPM) was coined by John Schlichter in May 1998
in a meeting of the Standards Committee of the Project Management Institute.
• Framework in which projects, programs and portfolios are integrated with organizational
enablers in order to achieve strategic objectives.
• Ensures undertaking of right projects and allocations of critical resources
appropriately
• Ensures all levels understand and support strategic vision
OPM
Portfolios
Programs
Projects Results
Organizational Project Management (OPM)
Strategies &
Business Goals
OPM helps organizations deliver value
through the following principles:
➢ Alignment with organizational strategy
➢ Integration with organizational enablers
➢ Consistency of education and delivery
➢ Organizational integration
➢ Value to the organization
➢ Continuous development
24. 24
Portfolio
Management
Aligns with organizational strategies by
selecting the right programs or projects,
prioritizing the work, providing resources
etc
Program
Management
Project
Management
Harmonizes its projects and program
components and controls interdependencies.
Focusses on Optimal Approach for Managing
them
develops and implements plans to achieve
specific scope driven by objectives of the
program or portfolio
Organizational
Project
Management
(OPM)
Aligning
Organizational
Strategieswith
OPM : Aligning Portfolios – Programs - Projects
OPM
The Framework used to align
project, program, and portfolio
management practices with
organizational strategy and
objectives, and customizing or
fitting these practices within the
organization’s context, situation, or
structure.
25. 25
Organizational Project Management Maturity Model (OPM3®) - is a globally
recognized best-practice standard for assessing and developing capabilities in Portfolio Management,
Program Management, and Project Management. It is published by the Project Management Institute (PMI).
OPM3 provides a method for organizations to understand their Organizational Project Management
processes and measure their capabilities in preparation for improvement.
Project Management Office (PMO) - is an organizational entity that centralizes governance and
management of projects by creating and maintaining standards for project management methodologies,
tools, sharing resources, procedures and guidelines to be used in the organization.
PMO Structure may vary in degree of control and influence they have on projects within the organization
such as Supportive, Controlling and Directing
PMO can ensure that responsibilities are properly identified and correctly assigned.
26. SN Panigrahi, Essenpee Business Solutions, India
Directive
Controlling
Supportive
•Directive PMOs take control of the projects by directly managing the
projects. This injects a great deal of professionalism into the
projects, and, since each of the project managers originates
and reports back to the directive PMO, it guarantees a high
level of consistency of practice across all projects
•Controlling PMOs provide Support and Require Compliance through
various means. Requirements might include adoption of
specific methodologies, templates, forms, conformance to
governance, and application of other PMO controlled sets of
Rules. The degree of control provided by the PMO is moderate
Supportive PMOs provide support in the form of on-demand
expertise, consultative role to projects by supplying templates, best
practices, training, access to information and lessons learned from
other projects. The degree of control provided by the PMO is low.
Project Management Office (PMO)
A project management office (PMO) is a management structure that standardizes the project-related
governance processes and facilitates the sharing of resources, methodologies, tools, and techniques.
There are several types of PMO structures in organizations, each varying in the degree of control and
influence they have on projects within the organization, such as:
27. 27
A project life cycle is the phases that a project passes through from its start to its completion. It
provides the basic framework for managing the project. PMBOK® ed 6
Within a project lifecycle, there is typically at least one phase related to developing the product,
service or result; also known as a development life cycle, of which there are several types:
The adaptive life cycle is also called a flexible or change-focused method (or agile
or change-driven methods) and it Combines both Incremental & Iterative Life Cycles
to Deliver Incremental Small Packages & Repeated take Iterations (Feedback) for
Continuous Improvements.
Scope, time, and cost are defined within the early phases of the project.
Any changes must then be carefully managed through Change Control
Mechanism. Also known as waterfall life cycles.
The deliverable is produced through a series of iterations that successively add
functionality within a predetermined time frame - getting feedback on a regular
basis. The deliverable are completed only after the final iteration.
Small Incremental Deliveries Frequently. Each increment includes Analyse, Design,
Build &Test, Deliver. Each increment integrates additional parts of the solution until
the final increment, where the remaining parts of the solution are integrated.
28. Project and Development Life Cycles – Different types
Hybrid (Combination of Predictive (Waterfall) and Adaptive): Elements of the project that have fixed requirements
follow predictive approach, elements that are ‘Progressively Elaborated’ follow an adaptive (iterative) approach
28
30. 30
➢ Requirements dynamic, repeated until correct, single
delivery
➢ Develop the product through a series of repeated
cycles,
➢ Allows feedback on partial completed or unfinished
work to improve and modify deliverable.
➢ Works well when uncertainty is high, when project
incurs frequent changes and stakeholders have
different view of desired
Analyze Design
Build
Test
Deliver
Analyze Design
Build
Test
Deliver
Incremental
Delivery - 1
Analyze Design
Build
Test
Deliver
Incremental
Delivery - 2
Analyze Design
Build
Test
Deliver
Incremental
Delivery - 3
Analyze Design
Build
Test
Deliver
Incremental
Delivery - n
❖ Requirements dynamic, performed once
for a given increment, frequent small
deliveries
❖ Provide finished deliverables which
customer can use immediately
32. 32
The most appropriate project life cycle model for an environment with a high level of
change and extensive stakeholder involvement in projects is:
•A. adaptive
•B. reflexive
•C. predictive
•D. iterative
•Ans : A
33. Assume your company is a leader in the market in production of cereal products. It has
been in this market for over 50 years. You are the project manager for a new product that is
a derivative from the company's core product. As you determine a life cycle for this project,
you believe you should follow one that is______________.
•A. Incremental
•B. Predictive
•C. Iterative
•D. Adaptive
Correct Answer: B
If the product to be delivered is well understood, a predictive life cycle or one that is fully
plan driven is recommended. The project's scope, time, and cost to deliver it are determined
in the project life cycle as early as possible.
34. SN Panigrahi, Essenpee Business Solutions, India 34
Software Project - Phases
Design BuildAnalyze Test Deliver
Civil Infrastructure Project - Phases
Design ProcurementPlanning Construction Inspection
Handover /
Deliver
A project life cycle is the Phases that a project
passes through from its start to its completion.
The term project phase refers to a collection of
activities within a project. Each project phase is
goal-oriented and ends at a milestone.
Process Groups are logical groupings
of Project Management Processes.
There are Five Process Groups :
Initiation, Planning, Execution,
Monitoring & Control, Closure.
These are Structured into Each
Phase & are Common for All Types
of Projects.
35. 35
PMI Project Management Framework
5
Process Groups
Total
49
Processes
10
Knowledge
Areas
The Inputs, Tools, Techniques and Outputs (ITTOs) of each
Process is laid out
36. INITIATING
Develop Project Charter
with Defined Objectives
Also Identify Stakeholders
PLANNING
Develop Detailed Project Plan
EXECUTING
Directing and Managing
Project Execution
MONITORING &
CONTROLLING
Measuring – Feedback &
Taking Corrective
Measures
CLOSING
Complete Formalities,
Contract Closure,
Archive Documents
SN Panigrahi
36
37. (No. of Processes)
Project Knowledge
Areas
SN Panigrahi
As per PMBOK
6th Edition,
there are
5 Process
Groups
&
10 Knowledge
Areas
= Total 49
Processes
37
38. Knowledge Areas
Initiating Process Group
Planning Process Group Executing Process Group
Monitoring & Controlling
Process Group
Closing Process Group
4. Project Integration
Management
4.1 Develop Project
Charter
4.2 Develop Project Management Plan
4.3 Direct and Manage
Project Work
4.4 Manage Project
Knowledge
4.5 Monitor and Control
Project Work
4.6 Perform Integrated
Change Control
4.7 Close Project or Phase
5. Project Scope
Management
5.1 Plan Scope Management
5.2 Collect Requirements
5.3 Define Scope
5.4 Create WBS
5.5 Validate Scope
5.6 Control Scope
6. Project Schedule
Management
6.1 Plan Schedule Management
6.2 Define Activities
6.3 Sequence Activities
6.4 Estimate Activity Durations
6.5 Develop Schedule
6.6 Control Schedule
7. Project Cost
Management
7.1 Plan Cost Management
7.2 Estimate Costs
7.3 Determine Budget
7.4 Control Costs
8. Project Quality
Management
8.1 Plan Quality Management 8.2 Perform Quality Assurance 8.3 Control Quality
9. Project Resource
Management
9.1 Plan Resource Management
9.2 Estimate Activity Resources
9.3 Acquire Resources
9.4 Develop Team
9.5 Manage Team
9.6 Control Resources
10. Project
Communications
Management
10.1 Plan Communications
Management
10.2 Manage Communications 10.3 Monitor Communications
11. Project Risk
Management
11.1 Plan Risk Management
11.2 Identify Risks
11.3 Perform Qualitative Risk
Analysis
11.4 Perform Quantitative Risk
Analysis
11.5 Plan Risk Responses
11.6 Implement Risk Responses
11.7 Monitor Risks
12. Project Procurement
Management 12.1 Plan Procurement Management
12.2 Conduct Procurements 12.3 Control Procurements
13. Project Stakeholder
Management
13.1 Identify Stakeholders 13.2 Plan Stakeholder Management 13.3 Manage Stakeholder
Engagement
13.4 Monitor Stakeholder
Engagement
Project Management Processes
39. 39
A Project can be viewed as a Total System which
Transforms Input into Output, and has a
Feedback Mechanism to assure that the output
meets the goals and objectives set for the project.
System - a set of things working together as parts of
a mechanism or an interconnecting network.
Feedback
Input
• All that is Required
to Carryout a
Process
Process
Tools & Techniques
• ….. Which are Applied on the
Inputs. This is where Project
Manager’s Skills are Put to Use
Output
• What is Produced out of this
Process – Project
Deliverables
PMBOK® describes the fundamentals of project
management in terms of processes. Each Project
Management Activity is Accomplished as a
Process. A process has some Inputs. A Set of
Tools and Techniques are then applied on these
inputs. As a Result some outputs are produced.
These outputs may further become inputs to some
other processes.
Feedback
Feed
back
40. SN Panigrahi,
Essenpee
Business 40
➢Throughout the
lifecycle of the
project, a set of
processes have
to be followed.
➢ Different groups of processes are
used based on the phase
through which the project is
going through, such as initiation,
planning, execution and closing
and overall monitoring and
controlling
41. 41
Get a Project Charter
Authorizing Start of a
Project
Identify Stakeholders;
Engage & Manage them
Develop a Project
Management Plan
Create the Project
Scope Statement; Create
the WBS with the project
team
Create the Activity List
from the WBS;
Sequence the Activities;
Estimate the Time Durations
Define Schedule
Estimate Project
Budget:
Estimate Activity Costs-
Aggregate to Work
packages, Control A/C &
then overall Project
Set the Quality
Parameters & Criteria
Estimate Resources
Requirement & Assign
the Needed Resources
Identify, Classify /
Categorize & Quantify
Risks- Plan Risk
Responses (Strategies)
Identify Outsourcing
Activities;
Plan for Type & Method of
Contracts; Source Selection
& Award of Contracts
Execute the Work as
Planned; Controlling &
Monitoring all the
Activities- Reporting
Establish
Communication
Channels & Methods
Fundamental Processes of Project Management
Get the Customer Acceptance – Close Contracts – Close Administrative Closure - Close the Project -
42. ➢ Consists of those processes performed to define a new project
or a new phase
➢ Initial scope is defined Broadly, and initial Financial Resources
are Committed
➢ Project Manager is Selected
➢ Project Charter is Created and Project is authorized
➢ Identified Stakeholders
Initiating Process Group: Project Charter and Stakeholders
Purpose of the Initiating Process Group:
❖ Align the stakeholders’ expectations with the project’s purpose,
❖ Give them visibility about the scope and objectives,
❖ Show how their participation in the project and its associated phases can
ensure that their expectations are achieved
42
Initiation Process
Group
Two Processes
Develop
Project Charter
Identify
Stakeholders
43. • Planning processes develop the project management plan
• Progressive Elaboration : Summary planning is done upfront. As more detailed
information or is gathered and understood through repeated iterations, plans evolve
through the Project Lifecycle.
Planning Process Group: Plan Your Work
Purpose of the Planning Process Group:
• Outline the strategy and tactics to successfully complete the project
• Identify risks that are not visible upfront
• Document how to execute the other processes in the project
43
44. • Consists of those processes performed to complete the work defined in the
project management plan to satisfy the project specifications
• This is where most of the project resources will be consumed
Executing Process Group: Work Your Plan
Purpose of the Executing Process Group:
• Produce the deliverables as per the plan by:
▪ Coordinating people and resources
▪ Managing stakeholder expectations
▪ Integrating and performing the project activities
44
45. • Processes required to track, review, and
monitor the progress and performance of the project
• Processes identify areas where changes to the plan are needed
• Changes are initiated, receive approval and implemented using PICC
(Perform Integrated Change Control)
Monitoring and Controlling Process Group:
Compare to Plan, Implement Approved Changes
Purpose: Monitoring and Controlling Process Group:
• Monitoring the project activities against the project management plan
• Controlling changes so only ‘Approved Changes’ are implemented
45
46. • Processes to conclude activities across all Process Groups:
Complete the project, phase, or contract
Closing Process Group: All deliverables ‘Approved’ - ‘Turn Over to Operations’
Purpose of the Closing Process Group:
• Verify that contracts and deliverables are completed
• Obtain acceptance by the stakeholders to formally close the project or
phase
• Conduct post-project or phase-end review and document lessons learned
• Update OPA (organizational process assets)
46
47. 47
The project manager is the person assigned by the performing organization to lead the team responsible
for achieving the project objectives. The project manager’s reporting relationships are based on the
organizational structure and project governance.
In addition to any specific technical skills and general management proficiencies required for the project,
project managers should have at least the following attributes:
Knowledge
Skills
Abilities
Other Attributes
Knowledge about project management, the business environment,
technical aspects, and other information needed to manage the project
effectively;
Skills needed to effectively lead the project team, coordinate the work,
collaborate with stakeholders, solve problems, and make decisions
Abilities to develop and manage scope, schedules, budgets,
resources, risks, plans, presentations, and reports
Other attributes required to successfully manage the project, such as
personality, attitude, ethics, and leadership
48. 48
Responsible for Accomplishing Project Objectives and managing stakeholders‟ Expectations
Works to Balance the Competing Constraints on the project with the resources available
The project manager must Define the Project, reduce it to a set of Manageable Tasks,
obtain appropriate Resources and build a Team to perform the work.
The project manager must set the final goal for the project and Motivate his / her Team to
complete the project on time.
The project manager must Inform all Concerned Stakeholders of Progress on a regular
basis.
The project manager must Assess and Monitor Risks to the project and Mitigate them.
No project ever goes exactly as planned, so project managers must learn to Adapt to and Manage
Change.
49. 49
The ideal skill set – the Talent Triangle – is a combination of technical, leadership and
strategic and business management expertise.
Technical Project
Management
Domain Specific
Examples:
•Requirements gathering
techniques
•Project scheduling and
Costing
•Risk Management
•Scope Management
•Project Planning
•Project Control
Leadership
knowledge, skills and
behaviors specific to
leadership-oriented skills
examples:
•Negotiation; Conflict
management
•Motivation; Communication
•Giving/receiving feedback
•Influencing
•Problem solving
•Team building
•Leading groups and teams
Strategic & Business
Management
examples:
• Strategic planning/alignment; Mission Business
and environmental analysis; Goals and objectives
•Finance
•Operational functions – e.g. marketing, legal
•Contract management
•Complexity management
•Innovation
51. 51
Project Integration Management is about:
➢ Ensuring that the due dates of project deliverables, the project life cycle, and the benefits
realization plan
➢ are aligned;
➢ Providing a project management plan to achieve the project objectives;
➢ Ensuring the creation and the use of appropriate knowledge to and from the project;
➢ Managing project performance and changes to the project activities;
➢ Making integrated decisions regarding key changes impacting the project;
➢ Measuring and monitoring progress and taking appropriate action;
➢ Collecting, analyzing and communicating project information to relevant stakeholders;
➢ Completing all the work of the project and formally closing each phase, contract, and the project
as a whole; and
➢ Managing phase transitions when necessary.
Project Integration Management is the specific responsibility of the project manager and it cannot be
delegated or transferred. The project manager is the one that combines the results from all the other
Knowledge Areas to provide an overall view of the project. The project manager is ultimately
responsible for the project as a whole.
53. ➢ Consists of those processes performed to define a new project
or a new phase
➢ Initial scope is defined Broadly, and initial Financial Resources
are Committed
➢ Project Manager is Selected
➢ Project Charter is Created and Project is authorized
➢ Identified Stakeholders
Initiating Process Group: Project Charter and Stakeholders
Purpose of the Initiating Process Group:
❖ Align the stakeholders’ expectations with the project’s purpose,
❖ Give them visibility about the scope and objectives,
❖ Show how their participation in the project and its associated phases can
ensure that their expectations are achieved
53
Initiation Process
Group
Two Processes
Develop
Project Charter
Identify
Stakeholders
54. 54
Business Goals
An organization might have dozens of prospective
projects vying for limited resources. This requires
a selection process that maximizes the efficiency
of scarce business resources. When selecting
between prospective projects, assess how each
project ties to the organization's goals and
objectives.
Base selections on the value each project lends
to the organization's strategic plans. Review the
organization's vision statements, mission
statements and business goals against each
project's objectives.
Selection Criteria
The process of evaluating individual projects or
groups of projects for the purpose of choosing
which to implement might include a number of
factors. When selecting among competing project
alternatives, additional project factors that might
be reviewed and compared include costs,
benefits and risks.
While the exact parameters of these factors might
not be known with certainty, estimates can be
compared to evaluate differences.
55. 55
Project Charter refers to a statement of objectives of a project – What is
Expected from the Project, authorizing Project Manager to utilize the Resources.
This statement also sets out detailed project goals, roles and responsibilities,
identifies the main stakeholders, and the level of authority of a project manager.
The Purpose of a Project Charter is to provide vital information about a
project in a quick and easy to comprehend manner.
Project charters are used to get approval and buy-in for projects and initiatives
as well as declaring scope of work, teams, authorities, project leads, measures etc.
56. SN Panigrahi, Essenpee Business Solutions, India 56
Project
Charter
Business
Case &
Objectives Problem /
Opportunity
Statement &
Broad Scope
Major Mile
Stones
Broad
Budget
Key
Stakehold
ers
Assumptions
&
Constraints
Primary
Risks
Performance
Measurement
Criteria
Why
Why are we doing this
project?
Justification
Who
Who all are involved from
the start of the Project?
When
When is the project going
to start and end?
What
What is the project
Budget?
Signed off
by the Project Sponsor /
Initiator with Date
Formally Authorizes the
Project Manager to Start
the Project
What
What is Problem or
Opportunity for which
Project is Initiated?
& What is Scope?
What
What are the Primary
Risks involved in the
Project?
57. The Six Sigma Project Charter – Elements :
➢ The Business Case, which sets out why a project is important to an organization – the
Need; Why Taken up – Justification; If Taken up what will be the Outcome & if Not
Taken up What will be the Consequences.
➢ The Problem Statement / Opportunity Statement, which defines an issue and how it is
affecting the organization – Covers : What is the Problem (CTQ – Current) – Since When
the Problem Existing – Where is the Problem – How did you Come to Know – What is the
Impact
➢ The Goal Statement, which should be in line with the problem you seek to solve, and
which should be SMART – Specific, Measurable, Attainable, Relevant and Time-bound.
➢ The Scope Statement, which defines the limits of the project and shows both what
should be included and what should be excluded.
➢ The Project Milestones, outlining the key activities that need to be completed and the
projected dates of completion.
➢ The Project Budget, provides broad estimate of all costs that are likely to be incurred
➢ A list of the Team Members that will be working on the project, which will depend on the
problem that needs solving and project scope.
➢ Sign-Off with Date – Project Sponsor must Sign-off with Date in-order to Formally Lunch
the Project
58. SN Panigrahi, Essenpee Business Solutions, India 58
S
• Specific
• Avoid being vague and general.. Does the goal support the strategy of the organization? If the project goals are
achieved, will the organization make significant progress towards the company's mission, vision, values, and corporate
goals?
• State Exactly What you Want to Accomplish (Who, What, Where & Why)
M
• Measurable
• Can the goal be measured in terms of cost, quality, quantity, and timeliness?
• How will you Demonstrate and Evaluate the Extent to Which the Goal has been Met?
A
• Attainable
• Has the team worked together to define the goal? Can everyone support the goal & is it be attained with
in the Ability to Achieve Outcome.
R
• Relevant & Realistic
• Whether Goals are Relevant & Realistic? Don't fall for the fallacy of stretch goals. Make sure the
goals are relevant or results-oriented and aligns to Core Objectives & Organizational Strategies?.
T
• Time Bound
• All goals should have a deadline. This adds a sense of urgency and keeps the team
focused.
• Include Deadlines / Milestones.
Project objectives define target status at the end of the project, reaching of which is considered
necessary for the achievement of planned benefits. They can be formulated as SMART criteria
59.
60. 60
A project milestone is a task of zero duration that shows Significant Achievement along a
project timeline.
The milestones should represent a clear sequence of events that incrementally build up until
your project is complete. ... They have zero duration because they symbolize an achievement, or a point
of time in a project.
Project Milestones are the most visible Indicators of Project Progress.
Milestones typically Mark Critical Decision Points, the completion of major project tasks and the ends
of various project phases.
Milestone
Deliverable -1 Deliverable -2 Deliverable -3
Deliverable -
4
Milestone -1 Milestone -2 Milestone -3
Time Lines
Total Project Schedule
61. 61
Project Design
Deliverable -2
Financing
Deliverable -3
Placing
Contracts
Deliverable -4
Project
Execution
Deliverable - 5
Milestone -2
Project
Design
Ready by
30th Sep
Milestone - 3
Availability of
Funds
By
2nd Oct
Time Lines
Total Project Schedule
Example:
Common Facility Center (CFC) Project
Project
Handover
Deliverable -6
Project
Planning
Deliverable - 1
Milestone - 4
Contract
Finalization
By 1st Nov
Milestone - 5
Project Work
Completion
15th Jan
Milestone - 6
Project
Handover to
Customer
By 26th Jan
Milestone - 1
Overall Project
Milestones,
Timelines,
Budgets etc
Finalized
By 15th Sep
SN Panigrahi
Starting of
the Project
15th Aug
End of the
Project
26th Jan
SN Panigrahi, Essenpee Business Solutions, India
62. 62
A deliverable is a Quantifiable tangible or intangible good or service produced as a result of a
project or part of a project that is intended to be delivered to a customer (either internal or
external).
A deliverable could be a Product, a Part, a Report, a Document, a Software Product, a Server
upgrade or any other building block of an overall project.
A work breakdown structure is based on these Deliverables.
Deliverable
Deliverable
Quantifiable
Results
Tangible
or
Intangible
To be
Delivered
To a
Customer
SN Panigrahi, Essenpee Business Solutions, India
63. 63
Project Selection Methods
Financial Analysis
Strategic Alignment
Solving Problems
Taking Advantage of Opportunities
Fulfilling Requirements
Time Frame
Weighted Scoring Model
64. 64
Benefit Cost Ratio
Payback Period
Present Value (PV)
Net Present Value (NPV)
Internal Rate of Return (IRR)
Profitability Index (PI)
Return on Investment (RoI)
Non Numerical Models
Sacred Cow
Operating
Necessity
Murder board
Competitive
Necessity
Numeric (Financial)
Models
65. 65
Project A Project B
Criteria Weightage Assigned
Value
Score Assigned
Value
Score
Business Priority
Alignment with Corporate Strategies / Goals 5 4 20 4 20
Business Growth / Expansion / Capacity Building 10 4 40 5 50
Financial 0
Expected Revenue / Benefits / Profits 10 3 30 5 50
Investments Required / Returns on Investment 7 4 28 5 35
Cost Reduction 6 3 18 3 18
Easing Working Capital Requirement 7 4 28 4 28
Marketing 0
Market Share Growth / Establishing New Markets 7 5 35 5 35
Improvement to Brand Awareness / Customer Reach 6 5 30 5 30
Improvement to Customer Satisfaction 8 5 40 5 40
Counter Competitors Strategy 8 4 32 3 24
Operational 0
Improvement of Operational Metrics – Efficiency / Effectiveness / Cycle Times 12 4 48 4 48
Regulatory / Legal 0
Regulatory Requirement 14 3 42 5 70
Total 100
391 448
Over all Score ‘= 391 / 100
=3.91
448 / 100
=4.48
Typical Values
5 Meets All
Requirements &
Offers Some Added
Value
4 Meets All the
Requirements
3 Generally Meets
Critical
Requirements
2 Meets Some
Requirements but a
Few Major Gaps or
Issues
1 Fails to Meet Overall
Requirements,
Serious Concerns
0 Does not Meet
Requirements / Fail
to Answer / Irrelevant
Selection of a Project
On 1-5 Scale
66. 66
•Stakeholder – is any individual, group, organization or entity that is either actively
involved in the project or has a vested interest in the project. Stakeholders may be
internal or external; positive or negative; performing or advising.
External stakeholders:
Customers,
End users,
Suppliers,
Shareholders
Regulatory bodies, and
Competitors
Internal stakeholders:
Sponsor,
Resource manager,
Project management office (PMO),
Portfolio steering committee,
Program manager,
Project managers of other projects, and
Team members.
Sixth
Prepare Stakeholder Register
68. • Planning processes develop the project management plan
• Progressive Elaboration : Summary planning is done upfront. As more detailed
information or is gathered and understood through repeated iterations, plans evolve
through the Project Lifecycle.
Planning Process Group: Plan Your Work
Purpose of the Planning Process Group:
• Outline the strategy and tactics to successfully complete the project
• Identify risks that are not visible upfront
• Document how to execute the other processes in the project
68
69. 69
Knowledge Areas Planning Process Group
4. Project Integration Management 4.2 Develop Project Management Plan
5. Project Scope Management
5.1 Plan Scope Management
5.2 Collect Requirements
5.3 Define Scope
5.4 Create WBS
6. Project Schedule Management
6.1 Plan Schedule Management
6.2 Define Activities
6.3 Sequence Activities
6.4 Estimate Activity Durations
6.5 Develop Schedule
7. Project Cost Management 7.1 Plan Cost Management
7.2 Estimate Costs
7.3 Determine Budget
8. Project Quality Management 8.1 Plan Quality Management
9. Project Resource Management 9.1 Plan Resource Management
9.2 Estimate Activity Resources
10. Project Communications
Management
10.1 Plan Communications
Management
11. Project Risk Management
11.1 Plan Risk Management
11.2 Identify Risks
11.3 Perform Qualitative Risk Analysis
11.4 Perform Quantitative Risk Analysis
11.5 Plan Risk Responses
12. Project Procurement
Management
12.1 Plan Procurement Management
13. Project Stakeholder
Management
13.2 Plan Stakeholder Management
73. 73
• Code of account identifier
• Description of work
• Assumptions and constraints
• Responsible organization
• Schedule milestones
• Associated schedule activities
• Resources required
• Cost estimates
• Quality requirements
• Acceptance criteria
• Technical references
• Agreement information
WBS Dictionary
Work Involved
Acceptance Criteria
Assumptions
Risks
Resources Aligned
Duration
Schedule Milestones
Cost
Due Date
Interdependencies
Before the work package_____________________
After the work package ___________________
Approved By
Control Account ID# Work Package Name Date of Update Responsibility
WBS Dictionary: Gives deliverable, activity and scheduling
information about each component of the WBS.
75. 75
Decomposition
• Used for dividing and subdividing project scope and project
deliverables into smaller, more manageable parts
• Activities represent the effort needed to complete a work package
• Involving team members in the decomposition can lead to better and
more accurate results
Project Scope
WBS
Work Packages
Activity List
Sequence
Activities
Decompose
Decompose
Activity attributes
• During the initial stages of the project, they include the activity identifier
(ID), WBS ID, and activity label or name
• When completed, may include activity description, predecessor
activities, successor activities, logical relationships, leads and lags,
resource requirements, imposed dates, constraints, and assumptions
76. Expert Judgment
Expert judgment can be used by using historical information to give duration estimates
from similar projects. It can also be used to reconcile different estimating methods.
Estimate Activity Duration
Analogous
Estimating
Based on previous activity (historic data) from similar activity or project with similar
nature (a form of expert judgment) - used when little is known on very similar
scope - works well when project is small – rough estimation – generally less costly
and less time consuming, but less accurate. Analogous is a TOP DOWN
estimating method.
Parametric
Estimating
It is an estimation technique which utilizes the statistical relationship that exists between a
series of historical data and a particular delineated list of other variables.
Examples : square footage in a contraction project, the number of lines or code that exist in a
software application, and other similar variables.
This information is them implemented for the purposes of calculating and demonstrating an
estimate for the entity of activity parameters.
Parametric is More Accurate. Bottom up is Accurate (When Parametric was not given)
77. 77
Estimation distribution type Expected Duration (TE)
1 Triangular distribution
The triangular distribution is
simply the average or mean of
the three separate estimates
TE = (TO+TM+TP) / 3
2 Beta distribution (PERT
technique)
The beta distribution, based
on PERT, assumes a great
deal of confidence that the
most likely estimate TM is
accurate. It is a weighted
average method.
TE = (TO+4TM+TP) / 6
Three-Point Estimates
78. 78
AEF : 6+5+4 = 15
BCEF : 4+6+5+4 = 19
BDG : 4+7+4 = 15
A graphical representation of the logical relationships / dependencies among the project schedule activities.
79. 79
Plan Cost Management
Cost Management
Plan
Estimate Costs
Cost Estimates;
Basis of Estimates
Determine Budget
Cost Baseline;
Project Funding
Requirements
80. Cost Baseline, Expenditures, and Funding
Requirements
Project Budget Component
80
Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) – Sixth edition, Project Management Institute, Inc., 2017, Figure 7-8, 7-9,
Page 255. Material from this publication has been reproduced with the permission of PMI
An approved version of time-phased project budget, excluding management reserve, can only
be changed through formal change control procedures. Used as a basis for comparison to
actual results.
81. 81
Rough Order of Magnitude (ROM) Estimate: The purpose of
a ROM estimate in project management is to provide
stakeholders and decisionmakers with a rough idea of the
project cost’s order of magnitude, e.g. whether an endeavor will
require $1 million or $10 million.
The accuracy of ROM estimates is -25% to +75% according to
the PMBOK (source: PMBOK, 6th edition, ch. 7.2). (analogous)
• used in early stage of the project when things are not
very solid/clear and/or for projects that span a lengthy
period
•Definitive Estimate: the differences between estimates and
actual figures may be within the range of -5% to + 10%. (bottom-
up)
• used in latter stage of the project and/or the project is
simple to estimate
Eg.:
If a project has a $250,000 USD estimate, assuming it didn’t change as
it went through the estimating process, the rough order of magnitude
tolerance is $187,500 to $437,500. The definitive or control estimate
tolerance is $237,500 to $275,000.
83. 83
The word Quality is Perceived differently by the different Experts & the word quality defined as :
➢Fitness for Use or Purpose.
➢To do a Right Thing at First Time.
➢To do a Right Thing at the Right-Time.
➢Find and know, what Consumer Wants?
➢Features that Meet Consumer Needs
and Give Customer Satisfaction.
➢Freedom from Deficiencies or Defects.
➢Conformance to Standards.
➢Value (Worthiness) for Money, etc.
Quality
?
Fitness for Use
or Purpose
To do a Right
Thing at First
Time
To do a Right
Thing at the
Right-Time
Find and know,
what Consumer
Wants?
Features that
Meet Consumer
Needs & Satisfy
Freedom from
Deficiencies or
Defects
Conformance to
Standards
Value
(Worthiness) for
Money
84. 84
1.Performance 5.Aesthetics
2.Reliability 6.Features
3.Durability 7.Perceived quality
4.Serviceability
8.Conformance to
Standards
Will the product do the Intended
job / Function?)
How often does the product fail?)
How long does the product last?
How easy is it to repair the product?
What does the product look like?
What does the product do?
What is the reputation of the
company or its product?
Is the product made exactly as the
designer intended?
The quality of a
product can be
described and
evaluated in several
ways. It is often very
important to
differentiate these
different dimensions
of quality.
David A. Garvin
(1987) provides an
excellent discussion of
Eight Components
or Dimensions of
Quality.
85. 85
Project
Quality
Management
Quality
Planning
Criteria Driven
Manage
Quality
Prevention
Driven
Control
Quality
Inspection
Driven
Quality planning is the
stage used to identify the
quality criteria that are
relevant to the project and
to plan how to satisfy
them.
It lays out the roles and
responsibilities, resources,
procedures, and
processes to be utilized for
quality control and quality
assurance.
Manage Quality is about
utilizing all the elements
defined in quality
planning that are needed
to meet the customer’s
requirements.
It is a continuous process
improvement.
It involves managing the
quality of the project
deliverables. It refers to
the actual testing of
product components and
the entire product before
and during delivery.
Quality Control is about
ensuring that the products
and services of the project
comply with relevant
quality standards and
about eliminating the
causes of unsatisfactory
performance.
It is the ongoing quality
management and review
of the process of doing the
work of the project during
its life cycle
SN Panigrahi, Essenpee Business Solutions,
India
86. 86
Quality metrics are a key component of an effective quality management plan and are the measurements used in ensuring
customers receive acceptable products or deliverables.
Describes a project or product attribute and how the control quality will verify the compliance to it
Ex: Percentage of tasks completed on time, number of defects in a period, failure rate and defect frequency, downtime per
month, errors found in lines of code, customer satisfaction scores, cost control, on-time performance, etc.
For instance, if the objective stays within the budget by ± 20%, the quality metric is used to measure the cost of the
deliverable to determine the percentage variance from the budget.
Quality metrics are used to directly translate customer needs into acceptable performance measures in both
products and processes. Project managers must be able to assess the progress, efficiency, and performance of their
projects and metrics are the means which allow project managers to do this.
However, it is important to note that metrics must be established in an effort to directly improve the product or processes
involved in the project. They must be attributable to an established goal, threshold, or customer requirement or else they
provide no value. This project quality metrics template provides both an outline and guide to developing your project quality
metrics document.
Plan Quality Management - Outputs
Quality Metrics
88. 88
❖ Identification of resources
❖ Acquiring resources
❖ Roles and responsibilities
❖ Project organization charts
❖ Project team resource management
❖ Training
❖ Team development
❖ Resource control
❖ Recognition plan
89. • RAM shows the project resources assigned to each work package.
• It is used to illustrate the connections between work packages or activities and project team members
• Ensures that there is only one person accountable for any one task to avoid confusion of responsibility
• Example of a RAM is a RACI (responsible, accountable, consult, and inform) chart
Responsibility Assignment Matrix (RAM)
89Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) – Sixth edition, Project
Management Institute, Inc., 2017, Figure 9-4, Page 317, Material from this publication has been reproduced with the permission of
• Responsible – A person to whom the work is assigned
• Accountable – A person who can take final decision or who
has ultimate ownership
• Consulted – A person to be consulted before taking a
decision
• Informed – A person to whom the decision taken is to be
informed
Data representation
Persons
Activity RAM SHYAM BHIM GOPAL RAMPAL MAHIPAL
Define A R I I C I
Design I A C I R R
Develop A R R
Test A R R R I I
Customer Approval R, A C I
RACI
90. Estimate Activity Resources - Outputs
Resource requirements
• Identify the types and quantities of resources required for each work package or activity in
work package
• Aggregated to determine estimated resources for each work package, each WBS branch and
project as a whole
Basis of estimates
• The Method used to develop the estimate
• Resources used to develop the estimate (from past projects)
• Assumptions, known constraints
• Range of estimates
• The confidence level of the estimate
• List of identified risks which influence the estimate
90
93. Roles and
responsibilities
Funding
Timing
Defines the approaches,
tools, and data sources
that will be used
Defines the lead, support,
and risk mgt. team
members for each activity
Identifies the funds
needed to perform
activities
Defines when and how
often the risk mgt.
processes will be
performed
Plan Risk Management - Outputs
Methodology
Risk Management Plan - A component of the project management plan and describes how risk
management activities will be structured and performed. It contains the following:
Risk strategy
Describe the general
approach to managing
risk on the project
17
Probability and
impact matrix
Stakeholder risk
appetite
Reporting
formats
Tracking
Definitions of probability and impact
levels are specific to the project
Prioritization rules may be specified by the
organization in advance of the project and they may
be tailored to the specific project
Documents how risk activities will be recorded
and how risk management processes will be
audited
Definitions of risk
probability and
impacts
Define how the outcomes of risk management
process will be documented, analyzed and
communicated
Measurable risk thresholds of each project
objective, helps determine acceptable level of
project risk exposure
Risk categories
Provide a means for grouping
individual project risks
94. • The risk breakdown structure (RBS)
is a hierarchical representation of
potential sources of risks.
• A risk breakdown structure (RBS)
helps the project team consider the
full range of sources from which
individual project risks may arise.
94
Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) – sixth edition, Project Management Institute, Inc., 2017, Figure 11-4,
Page 406. Material from this publication has been reproduced with the permission of PMI
95. 95
Political
Economic
Social
Techno
logical
Legal
Environ
mental
PESTLE Analysis
• Change in leadership
• Shareholder demands
• Technological Development
• Licensing
• Consumer Preferences
• Technology Maturity
• Economic situation and
trends
• Funding
• Regulations
• Legislation
• Ethical issues
• Shifts in demographics
• Trends
• History
• Environmental Regulations
• Ecological
• Environmental issues
Prompt Lists
• Prompt lists are predetermined list of categories.
• The lowest level of RBS is used as prompt list.
• For identifying
overall project risks
some common
strategic
frameworks such as
PESTLE, TECOP,
VUCA may be used
96. 96
Risk Register (also called as Risk Log) is a master document that provides the details of all identified risks and their characteristics.
Though it is created during risk identification process, it is periodically updated throughout the project management life cycle & it is an
important risk management document in every project. Here are the list of data fields part of a typical risk register:
➢ Risk ID – Unique ID to report/review/communicate the
risk
➢ Risk description – Short description about the risk
event
➢ Risk owner – Name of the risk owner
➢ Risk Category – Category of the risk
➢ Cause of the Risk – Information about the risk trigger
➢ Effect or Impact of the Risk – Information about the
effect or impact if the risk occurs
➢ Project phase detected & affected
➢ Ranking – Ranking of the risk
➢ Affected WBS activity – WBS ID if it affects a specific
work package
➢ Probability of risk occurrence – This is from
qualitative risk analysis
➢ Frequency of risk occurrence – This from qualitative
risk analysis
➢ Potential responses – Possible responses for the risk.
It can be more than one
➢ Approved final response – Response selected for
implementation
➢ Contingency plan – Plan in place to reduce the risk
effect in case a risk trigger occurs
➢ Fallback plan – Plan in place suppose primary
response didn’t work effectively as expected
➢ Risk Triggers – warning signs of a risk occurrence
➢ Last occurrence – Last occurred date/time
➢ Cost of mitigation/fallback plans – Cost estimated for
mitigation or fallback plan execution
➢ Time required for risk responses – helps in schedule
plans
➢ Reserves – Management & contingency reserve
information if available
➢ Risk review audit information – Comments about the
risk based on risk review audit
➢ Current status of the risk – Closed (or) Open (or)
Trigger event identified, etc.
Risk Register
SN Panigrahi, Essenpee Business Solutions,
India
97. 97
Risk Identification Qualitative Rating Risk Response
Risk Risk Category Probability Impact Risk Score Risk Ranking Risk
Response
Trigger Risk Owner
RISK REGISTER TEMPLATE
SN Panigrahi, Essenpee Business Solutions,
India
98. RISK Value = SEVERITY OF IMPACT X LIKELIHOOD
RISK PRODUCT PROFILE
NTI–SNPanigrahi
SN Panigrahi, Essenpee Business Solutions, India 98
99. Sensitivity Analysis – Example of a Tornado diagram
Tools Used :
➢ Simulation -
➢ Expected Monetary Value (EMV)
➢ Decision Tree
➢ Sensitivity Analysis
Decision Tree – Example
101. Contingency
Reserve
❖ It is a Primary Risk
Response Strategy
❖ Used for handling
Negative Risks
proactively
❖ Taken only when risk
event occurs
❖ Activated only for
specific Pre-Accepted
Risks with certain
triggers
❖ (i.e. no proactive actions
to be taken to Avoid or
Minimize (Mitigate) their
occurrence)
❖ Only for Identified risks
(known unknowns)
❖ Developed during Plan
Risk Responses process
❖ Funded from
Contingency Reserves
❖ PM has Authority to Use
Fallback Plan
➢ It is Not a Primary Risk
Response Strategy
➢ It is activated when
Primary Response
(Contingency Plan) Not
Effective (Plan B)
➢ To be taken after the
Contingency Plan
➢ For Identified risks
(known unknowns)
➢ Developed during Plan
Risk Responses
process
❖ Funded from
Contingency Reserves
➢ PM has Authority to
Use
Workaround
▪ For Unidentified Risks
which are Passively
Accepted.
▪ There is No Pre-
existing Plan for
workarounds
▪ Funding for this is
taken from
Management
Reserves upon
Management
Approval
▪ PM has No Authority
to Use
▪ Developed during
Control Risks
Process.
▪ Implementing
workarounds can
cause a Change
Request.
Management
Reserve
•Management reserves are used to
manage Unknown-
Unknowns (Unknown=Unidentified,
Unknowns=risks)
•Management reserves are not part of
the Performance Measurement
Baseline.
•These reserves are not estimated
using a technique, but
are allocated based on organizational
norms.
•Management reserves are under the
control of the higher management,
and project manager do not have
authority on these reserves.
•Use of these reserves, cannot be
done at Project managers discretion.
•A formal request should be raised
and it should be approved for using
these reserve.
•Management Reserves are allocated
at the Project level only.
102. SN Panigrahi 102
Plan Procurement Management
Procurement Management Plan
Procurement strategy
Bid Documents
Procurement Statement of Work
Source Selection Criteria
Make-or-buy decisions
Independent Cost Estimates
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103
CONTRACT
AGREEMENT
(meeting of the minds )
+
=
ENFORCEABLE BY LAW
COMPETENT TO CONCTRACT
FREE CONSENT
LAWFUL OBJECT
LAWFUL CONSIDERATION
NOT VOID
PROMISOR /
OFFEROR /
SELLER
PROMISEE /
OFFEREE /
BUYER
PROMISE / OFFER
ACCEPTANCE
LEGAL OBLIGATIONS
L
E
G
A
L
R
E
L
A
T
I
O
N
S
H
I
P
L
E
G
A
L
R
E
L
A
T
I
O
N
S
H
I
P
• Contracts – Legal
documents between
buyer and seller and is
also called
▪ Agreements
▪ An understanding
▪ A subcontract
▪ A purchase order
(unilateral
agreement)
105. Firm Fixed Price
(FFP) or Lump
Sum Contract
Fixed Price Plus
Incentive Fee
(FPIF)
Fixed Price
Time &
Material
Fixed Price with
Economic Price
Adjustment (FP/EPA)
Fixed Price with
Re-determination
(FP/RD)
Cost
Reimbursable
Cost Reimbursement
(CR) or Cost Plus
Fixed Fee (CPFF)
Cost Plus
Incentive Fee
(CPIF)
Cost Plus Award
Fee (CPAF)
Cost Plus
Percentage of
Cost (CPPC)
Types of Contracts
SN Panigrahi, Essenpee Business Solutions,
India
105
106. SN Panigrahi, 106
An open inquiry that spans the market seeking broad data and knowledge. RFIs are used to gather information.
An RFI is a solicitation that procurement sends to a broad base of potential suppliers. Its purpose is for
conditioning, gaining information, preparing for an RFP or RFQ, forming a strategy, or building a database &
Knowing Supply Base.
RFI – Request For
Information
A business needs-based request for specific solutions to the sourcing problem. An RFP is procurement’s
solicitation sent to potential suppliers with whom a creative relationship or partnership is a consideration.
RFP – Request For
Proposal
A part of the sealed bid process giving detailed written specifications including all the terms and necessary
conditions for projects and invite contractors to bid their proposals for various projects.
IFB – Information For
Bid
A chance for potential suppliers to competitively cost the final chosen solution(s). An RFQ is a solicitation sent to
potential suppliers. It contains, in exacting detail, a list of all relevant parameters of the intended purchase.
RFQ – Request For
Quotation
It is process to call vendors for doing a certain job or provide certain service at a competitive price. Usually done
through Press Advertisements & Public Notices
Tender Notice
An invitation to negotiate is not an offer. An invitation to negotiate is merely a preliminary discussion or
an invitation by one party to the other to negotiate or make an offer.Invitation For
Negotiation
Pre-bid meetings are gatherings scheduled after an invitation for bids or request for proposals is advertised.
Their purpose is to clarify any concerns bidders may have with the solicitation documents, scope of work and other
details of the requirement.
Pre-Bid Conference
107. SN Panigrahi 107
Plan Stakeholder Management
Stakeholder Engagement Plan
The process of:
• Developing approaches to involve project stakeholders based on their needs, interests, and potential impact on
the project success.
The key benefit is that it provides:
• An actionable plan to interact effectively with stakeholders.
108. SN Panigrahi, Essenpee Business Solutions, India 108
What is a Kickoff Meeting?
A kickoff meeting is one of the first meetings held amongst the Project
Stakeholder when starting a new project. This meeting can include the
high-level project stakeholders such as the project sponsor,
management, and the project manager, as well as the team members
and the project manager. This meeting plays a vital role because it
gives a project manager the opportunity to define the common goal
and the purpose of completing the project and as well build a
consensus.
The project kick-off meeting is usually associated with the end of
planning and the start of executing.
Purpose : Its purpose is to communicate the objectives of the project,
gain the commitment of the team for the project, and explain the roles
and responsibilities of each stakeholder.
109. 109
The kick-off may occur at different points in time depending on the
characteristics of the project:
For Small Projects:
For small projects, there is usually only one team that performs the
planning and the execution. In this case, the kick-off occurs
shortly after initiation, in the Planning Process Group,
because the team is involved in planning.
In small projects, you usually conduct only one project kickoff
meeting. This may be their first meeting together since most of the
team members are new.
When Kick off Meeting Held?
Small Projects After Initiation – In the
Planning Process
Large Projects When Initial Planning
is Complete & in the
Execution Process
Multi-Phase Projects At the beginning of
each phase
For Large Projects:
In large projects, a project management team normally does the majority of the planning, and the remainder of the
project team is brought on when the initial planning is complete, at the start of the development /
implementation. In this instance, the kick-off meeting takes place with processes in the Executing Process
Group.
Multiphase projects will typically include a kick-off meeting at the beginning of each phase.
The meeting will be a virtual kickoff meeting where all participants can communicate with each other through
the internet if the project is complex and spread out across a large geographical area.
When Does the Kickoff Meeting Take Place?
110. SN Panigrahi,
Essenpee
Business 110
.
What is the Purpose of a Kickoff Meeting?
➢ To announce the start of the project.
➢ A successful kickoff meeting can set the tone for the rest of the project
➢ To help all team members to have a better understanding of the project objectives, assumptions, constraints, deliverable(s),
challenges, methodologies, procedures, plans, working environment, and the roles of each stakeholder, etc. To ensure that everyone
is familiar with their team members working on the project.
➢ To help to improve feelings of trust and promotes a mutual understanding and agreement among team members.
➢ To ensure that all the stakeholders are familiar with the details of the project by communicating them the objectives of the project.
➢ To clearly explain the roles and responsibilities of each and every stakeholder
➢ To gain the commitment of the project team.
➢ To establish positive relationship between the client and the project team.
111. 111
Direct and Manage Project
Work
Manage Project
Knowledge
Manage Quality
Acquire Resources
Develop Team
Manage Team
Manage Communications
Implement Risk
Responses
Conduct Procurements
Manage Stakeholder
Engagement
113. 113
Monitor and Control Project Work is the process of tracking, reviewing, and reporting the
progress to meet the performance objectives defined in the project management plan.
This involves comparing actual performance with planned performance and taking
appropriate corrective action.
The key benefit of this process is that it allows stakeholders to understand the current state of the
project, the steps taken, and budget, schedule, and scope forecasts.
The project control process mainly focuses on:
➢ Measuring planned performance vs actual performance.
➢ Ongoing assessment of the project’s performance to identify any preventive or
corrective actions needed.
➢ Keeping accurate, timely information based on the project’s output and associated
documentation.
➢ Providing information that supports status updates, forecasting and measuring
progress.
➢ Delivering forecasts that update current costs and project schedule.
➢ Monitoring the implementation of any approved changes or schedule amendments.
115. 115
** Verified Deliverables - have been completed and checked for correctness by the Quality Control process.
** Accepted Deliverables - have been accepted through the Validate Scope process.
So, Verified Deliverables is output of Quality Control & a Verified Deliverable is an input to the Validate Scope
process, while an Accepted Deliverable, where formal sign-off is obtained, is the key output of the Validate Scope
process.
Input
Deliverables
Process
Quality Control
Output
Verified Deliverables
Input
Verified
Deliverables
Process
Validate Scope
Output
Accepted Deliverable
checked for correctness
formal sign-off is obtained
SN Panigrahi, Essenpee Business Solutions, India
116. 116
Monitor and Control
Project Work
Control Scope
Control Schedule
Control Cost
Control Quality
Control Resources
Monitor Communications
Monitor Risks
Control Procurements
Monitor Stakeholder
Engagement
117. 117
Gantt Chart is a Special Type of Bar Chart – a 2-dimensional chart.
➢ It’s Generally Represented as Horizontal bars in a Bar Chart. Activity durations are shown as
horizontal bars – easy representation to exhibit project progress.
➢ Vertical Axis is used for listing Schedule Activities or WBS Components. Usually left side is used
for listing.
➢ Horizontal Axis is used as a time scale. It shows Activity Start & Finish dates.
➢ The Length of Bar Represents Activity Duration. The duration can be shown in any time unit e.g.
hours, days, weeks, months etc.
➢ Different colored bars are used to show finished and unfinished work.
➢ Usually finished portion of an activity is shown in dark color. Usually unfinished portion of an
activity is shown in White or light color.
➢ It doesn’t show dependency or resources
➢ A summary Activity is also shown as a Bar. Usually, Summary Bars have different color and/or
shape than regular Bars.
➢ A milestone is generally shown as small rhombus.
118. 118
•Hammock Activity: Hammock activity is referred to as summary activity. These
are activities that are roughly related and are reported as a single activity. On a
Gantt chart a hammock activity is usually displayed as a thick black bar above a
grouping of lower level activities.
SN Panigrahi, Essenpee Business Solutions,
India
120. SN Panigrahi, Essenpee Business Solutions, India 120
❖ Are we as per Schedule / Behind or Ahead of Schedule?
❖ How Efficiently are we using Time?
➢ How Effectively must we use our Remaining Resources?
❖ When we are Likely to Finish Work?
How are we Doing Cost-wise?
➢ Are we as per Budget / Over or Under Budget?
➢ How Efficiently are we using our Resources?
➢ What is the Project Likely to Cost?
➢ Will we be under or Over Budget?
➢ What will the Remaining Work Cost?
How are we Doing Schedule-wise?
Project Review Questions
➢Where are
We Now?
➢Where are
We Going?
121. 121
A B C D E
Budget At Completion (BAC) – Say 100
Duration : 5 Months
As per Planning
Planned Value (PV) - 60
Earned Value (EV) - 50
EV = 50
PV = 60
AC = 70
BAC = 100
SN Panigrahi, Essenpee Business Solutions, India
Basic Understanding of Terms
Review@the
Endof3rd
Month
Actual
WorkDone
Project : Construction of 5 Equal Residential Blocks.
Duration to Complete the Project : 5 Month.
Original Estimation of Budget : 100
Review Meeting : End of 3rd Month
Actual Work Completed : 2.5 Blocks
Actual Cost Spent : 70
122. 122
Budget at Completion
(BAC)
The Total Budget for the Project - Baseline
Planned Value (PV) How much worth of work was Scheduled (Planned) to Date
Earned Value (EV) How much worth of Work was Completed to Date % Work Completed * BAC
Actual Cost (AC) The Amount of Money Spent so far
Scheduled Variance (SV) The difference between the cost of work performed and the
cost of work scheduled
SV = EV - PV
Cost Variance (CV) The difference of the actual cost and the expected cost. CV = EV - AC
Schedule Performance
Index (SPI)
Ratio between EV and PV, to reflect whether the project work
is ahead of / on / behind schedule in relative terms
SPI = EV / PV
If a project has a Schedule Performance Index (SPI) of 0.90, this means that:90%
of the work planned to date has been completed
Cost Performance Index
(CPI)
Ratio between EV and AC, to reflect whether the project work
is under / on / over budget in relative terms
CPI = EV / AC
Cost Performance Index (CPI) of 0.90, this means, 111% (1/CPI) of the budget
planned to date has been spent
Estimate at Completion
(EAC)
The estimated total amount of money needed to be put into
the project based on the information available as today
(Revised Estimation)
3 Assumptions
1. EAC = BAC/CPI - If You will continue in the same Rate of Spending.
2. EAC = AC + (BAC – EV) - If the remaining work is expected to be
completed (Future work) at the planned rate
3. EAC = AC + (BAC – EV)/(CPI*SPI) – If both CPI & SPI influence remaining
work.
4. EAC = AC + Bottom up Estimate to Complete
if initial cost estimate was fundamentally flawed,
Estimate to Completion
(ETC)
How much more do we need to put into the project to
complete Balance Work.
ETC = EAC - AC
Variance at Completion
(VAC)
The difference between the Estimated total cost and the
original budget
VAC = BAC – EAC
To Complete
Performance Index
(TCPI)
The efficiency needed to finish the project on budget, it is the
ratio between budgeted cost of work remaining and money
remaining
TCPI = Remaining Work / Remaining Funds
= (BAC- EV) / (BAC – AC) – As per Original Budget
= (BAC- EV) / (EAC – AC) – As per Re-Estimate
EVM Method
Summary
123. 123
With reference to the diagram below, it can be inferred that the project is currently
A. ahead of schedule and under
budget
B. ahead of schedule and over
budget
C. behind schedule and under
budget
D. behind schedule and over
budget
Ans : Solution: D
As of today, AC > EV = over
budget and EV < PV =
behind schedule, so the
project is both “behind
schedule and over budget”.
A. ahead of schedule and
under budget
B. ahead of schedule and
over budget
C. behind schedule and
under budget
D. behind schedule and over
budget
Solution: C
As of today, AC < EV =
under budget and EV < PV =
behind schedule, so the project
is “behind schedule and under
budget”.
A. ahead of schedule and under
budget
B. ahead of schedule and over
budget
C. behind schedule and under
budget
D. behind schedule and over
budget
Solution: B
As of today, AC > EV = over
budget and EV > PV = ahead
of schedule, so the project is
“ahead of schedule and over
budget”.
127. SN Panigrahi,
Essenpee
Business 127
Phase
Closure on
Completion
Project
Closure on
Completion
Trigger for
Project Closure
Project
Closure on
Termination
A project can be closed for
Different Reasons, all
Depending on the Nature
of the Project, & the
Circumstances etc.
If the project has several phases, then on Completion of
each phase, there should be closure.
When the project is Completed Successfully & Delivered its
Outcomes & got Acceptance of Customer, then Project May
Close.
This is the stage where all deliverables are finalized and
formally transferred, and all documentation is signed off,
approved, and archived.
When an Unexpected Risk event Arises, Driving the Project
Team to Terminate the Project, or when the Project Fails in
Delivering the Expected Benefit / Objectives or Termination
on Mutual Consent. This kind of closure can also occur when
a strategic change is decided by the organization or for
budget restriction impacting the project portfolio.
What Triggers the Closure of Project?
The Project Charter will
include Project Success
Criteria, Project Exit Criteria
and who will sign off the
project. Project exit criteria
are the conditions that need
to be met in order to close
or cancel the project/ phase.
128. SN Panigrahi, Essenpee Business Solutions, India 128
Scope Confirm the formal acceptance of deliverables by the customer.
Cost Ensure that all Costs are Charged to the Project. Measure whether the Benefits of the
Project were Achieved as Planned; Cost Audits - Close Project Accounts
Quality Audit Project Success or Failure – Project Deliverables met all Quality Criteria
Resources Check the Issue Log and ensure there are no open issues; Reallocate the Project Facilities,
Equipment and other Physical Resources; Deal with unused project material; Release /
Reassign Project Team members
Procurement Close all Procurements & Contracts
Finalize Open Claims; Update Records and Archive
Integration /
Administrative
Transfer the product / service/ result to the next phase or to the operations;
Evaluate how the estimates of duration, cost and resources compared with the actual
performance; Update lessons learned; Validate that the exit criteria have been met.
Forward any suggestions for improving/ updating the policies and procedures of the
organization; Document the reasons if a project is terminated before completion
Submit a final report providing a summary of the project performance; Archive project
Activities Involved in Closure of Project?
131. SN Panigrahi, Essenpee Business Solutions, India 131
CAPM® (Certified
Associate in
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Management
Professional)
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(Program
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Professional)
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Management
Professional)
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Professional)
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Management Maturity Model) Certification
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Practitioner)
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Analysis)
PMI offers a comprehensive certification program for practitioners with different levels of education and
experience. The certifications are developed and maintained through a vigorous process.
PMI Certification Department Mission
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project management practitioners
and the profession.